News Bob Iger outlines the need to transform the Walt Disney Company resulting in 7000 job losses and $5.5 billion in cost savings

[TP2000]

The return to the office could be the real reason for the slump in productivity. Here’s the data to prove it

Productivity jumped as offices closed, and stayed high through 2021. When companies started mandating a return to the office, productivity dropped sharply.

fortune.com

What that productivity graph shows is that the Covid shutdowns (two weeks to flatten the curve!) of 2020 sent the entire economy and business environment into an unprecedented tailspin, which I think we all can agree on. Then as life returned to normal in some states in 2021, and almost all states by 2022, things got back on track and productivity has increased over pre-Covid levels and is still on an upward trajectory.

The trend lines in place since 2012 seem to have recovered their upward trajectory at a traditional pace and landed in early 2023 about where they should have been had Covid and mass shutdowns not happened at all.

2020 Output = 123 2023 Output = 130
2020 Hours Worked = 113 2023 Hours Worked = 115
2020 Productivity = 109 2023 Productivity = 115

 

[CaptainMickey]

Why not outsource those jobs for cheaper pay since the argument is you don’t need to come in?

Exactly! Be careful what you wish for. If your job can be done from home, it can be done from Mexico or India, or anywhere. The talent pool gets incredibly larger with workers that might take a lower salary and work as hard or harder for less money. That's always the next step. Globalization. The exceptional employees are always fine.

I think the point most of us were making is that being vocally opposed to the CEO's directives is usually not great for your career advancement, and it's usually a really bad idea when they announce they are looking to get rid of 7,000 people. The timing, Employees usually make more demands when there is a labor shortage, not during lay offs.

Iger obviously thinks there is a good reason to get employees back in the office (Only for 4 days a week!) other then just being mean, and the CEO gets to decide.

 

[TP2000]

I think the point most of us were making is that being vocally opposed to the CEO's directives is usually not great for your career advancement, and it's usually a really bad idea when they announce they are looking to get rid of 7,000 people. The timing, Employees usually make more demands when there is a labor shortage, not during lay offs.

It's clearly a generational thing, and they're just showing how out of touch they are. I would bet 10 churros that all the signatures on that petition were from people under the age of 40, with a majority under the age of 32.

They actually think this was a good negotiation strategy?!? How stupid and self-absorbed do you have to be to not see that?

 

[flynnibus]

The return to the office could be the real reason for the slump in productivity. Here’s the data to prove it

Productivity jumped as offices closed, and stayed high through 2021. When companies started mandating a return to the office, productivity dropped sharply.

fortune.com

Or Fortune is really drawing horrible conclusions between different data sets.

Productivity in itself is a very course estimate and is more tied to the idea of economic growth and only really tries to model worker output (as derived from economic output and hours) - which in itself is pretty fluffy. Then add in the fact people work less and less traditional hours and it all gets hand-wavy. Then Fortune tries to suggest it's just return to work associated with this swing in measurement... without direct causation? OKKKKK

 

[Alanzo]

What that productivity graph shows is that the Covid shutdowns (two weeks to flatten the curve!) of 2020 sent the entire economy and business environment into an unprecedented tailspin, which I think we all can agree on. Then as life returned to normal in some states in 2021, and almost all states by 2022, things got back on track and productivity has increased over pre-Covid levels and is still on an upward trajectory.

The trend lines in place since 2012 seem to have recovered their upward trajectory at a traditional pace and landed in early 2023 about where they should have been had Covid and mass shutdowns not happened at all.

2020 Output = 123 2023 Output = 130
2020 Hours Worked = 113 2023 Hours Worked = 115
2020 Productivity = 109 2023 Productivity = 115


View attachment 699817

While it is true that productivity levels have increased since the pandemic, it is not necessarily true that this increase can be solely attributed to the lifting of COVID-related shutdowns. It's important to be mindful of the post hoc ergo propter hoc fallacy, which assumes causation based solely on temporal sequence, as there could be other factors that contributed to the increase in productivity, such as the adoption of new technologies or changes in work routines.

By acknowledging the complexity of the situation and avoiding logical leaps, we can better understand the factors that contribute to productivity levels and make more informed decisions moving forward.

 

[Dutch Inn '76]

Maybe it's generational, maybe it's the lazy people talking; but the boss is usually from a previous generation and not lazy, so either way - go back to work!

 

[TP2000]

By acknowledging the complexity of the situation and avoiding logical leaps, we can better understand the factors that contribute to productivity levels and make more informed decisions moving forward.

And yet the trend lines from that Fortune data, even after recovering from their 2020 nosedive and frenzy, ended up in 2023 about where they were headed back in 2019.

Remove that crazy crash and whiplash rebound from 2020 to 2022, and early 2023 is where we probably would have been anyway. With many large companies now telling most of their employees to put on some Dockers and return to the office so that collaboration and mentorship and human interaction may continue.

 

[Alanzo]

And yet the trend lines from that Fortune data, even after recovering from their 2020 nosedive and frenzy, ended up in 2023 about where they were headed back in 2019.

Remove that crazy crash and whiplash rebound from 2020 to 2022, and early 2023 is where we probably would have been anyway. With many large companies now telling most of their employees to put on some Dockers and return to the office so that collaboration and mentorship and human interaction may continue.

View attachment 699854

While it's true that productivity levels have increased since the pandemic, it's not accurate to attribute this solely to the lifting of COVID-related shutdowns. There are many potential factors that could be contributing to productivity levels, such as the adoption of new technologies or changes in work routines. In fact, research has shown that remote work can actually increase productivity for some (but not all!) workers, despite the challenges that come with it.

For example, a recent study by Harvard Business School found that a majority (but not all!) of workers were more productive and had a better work-life balance when working remotely. It's clear that the pandemic has brought about significant changes in the way we work, and it's important to consider all potential contributing factors when assessing productivity levels.

By taking a more nuanced approach to understanding productivity levels, we can better identify the challenges that workers and companies face and make informed decisions about the best ways to support long-term success. This means considering a range of potential factors, including new technologies, changes in consumer behavior, and shifting economic trends, rather than simply attributing causation based on temporal sequence (same fallacy).

Here's another monkey wrench that will break the brains of people who are used to old-school productivity concepts. Recent studies, such as the largest-ever study of a four-day workweek conducted in the United Kingdom, have shown that flexible work arrangements can have a positive impact on both workers and employers. This study found that 15% of employees who participated said they would not go back to working five days a week ("no amount of money", this cohort said!), and companies' revenue increased 35% on average when compared with a similar period from previous years. In addition to improved productivity and revenue, the study cited other benefits, such as increased gender equality, better sleep, and reduced stress for workers. These findings suggest that adopting more flexible work arrangements could be a positive step for both workers and businesses.

Being fair here, it's important to note that not all work arrangements will work for every industry or worker. But taking a nuanced approach to understanding the needs and preferences of workers and companies will be important in identifying the best solutions to support long-term success.

 

[denyuntilcaught]

Recent studies, such as the largest-ever study of a four-day workweek conducted in the United Kingdom, have shown that flexible work arrangements can have a positive impact on both workers and employers...companies' revenue increased 35% on average when compared with a similar period from previous years. In addition to improved productivity and revenue, the study cited other benefits, such as increased gender equality, better sleep, and reduced stress for workers. These findings suggest that adopting more flexible work arrangements could be a positive step for both workers and businesses.

Just quoting this for posterity. Pushing for 100% in the office is just an archaic - and evidently unsmart - business move.

 

[TP2000]

Just quoting this for posterity. Pushing for 100% in the office is just an archaic - and evidently unsmart - business move.

I can agree with that. I only wished I could have "worked from home" every Friday back in the 20th century! What a fun perk that must be for folks! And it's basically free to the companies that can offer it, as even the Internet connection is paid for by the employee.

But for many industries and business cultures, permanent work from home is not helpful for long term growth and employee development. I thought Bob Iger's point about mentoring and leadership development happening only in real life at the office was spot on and brilliant. Disney is a creative company, and humans need to be with other humans to foster creativity and growth.

If you want to be a individual contributor, like a computer programmer or a call center employee, I can see how working from home permanently is fine for that level of work. But for many industries, you've got to get the humans you employ all in the same room and routinely interacting to foster long term growth and change and development. For both the employees benefit, and the product they sell.

 

[Riviera Rita]

I had a promising 21 year old tell me he was “physically and mentally exhausted” - after working a 32 hour week(!) He wants to work 4 days a week to have “balance” in his life.

At his age, I was on salary for $550 a week, and scheduled to work 60 hours. If it took longer to get things done, I had to stay longer. And I had a part time job.

I guess these kids would have starved.

The key difference is I didn’t think “my company owes me more.” I thought “what can *I* do to make more money/cut expenses etc.” It’s my responsibility, not my employer. I agreed to the deal when I got hired, and they stuck to that deal.

At his age I was working a 40 hour week on less wage than my male colleagues for doing the same job. I worked my way up the ladder through sheer hard work and when I retired I think I was fitter and healthier than the people I was working with as I still did 37 and a half hours a week and they were complaining at doing 20-30 hours. I guess I'm fortunate in that at their age their wasn't so many material goods that people desired as they do now, travel was always my thing and still is, I couldn't care less about streaming subscriptions or the latest gadget or phone.

 

[jnasty]

No, the average salary would be about two-thirds of that number. Or an average salary around $160,000. About a third of the cost of employing each person is paid for by a company in benefits, 401K matches, payroll taxes to the government, administrative costs, etc.

The pre-tax salary of those 7000 layoffs is around $160,000 per year on average, taking those business costs into consideration.

No

 

[plutofan15]

They made that god knows how many times over with G+ and ILL and ticket cost increases and 3 years of parking fees, and not having to pay Mears, more after hour parties, more expensive light sabers.

etc.
etc.
etc.

The Walt Disney Company as a whole has not recovered from lost revenue due to the pandemic at this point.

 

[plutofan15]

While most like to point out the cons to going back into the office, there are certainly pros as well. Back in April, my wife's company was asking employees to report back to the office two days/week. She has been back full time since then. The main reason for her to return was the separation of work and home. When she is at work, it is time to focus on work. When she is home, it is family time. It was difficult to separate the two when working from home full time. Also, she was putting in far more hours in when working from home. It was far too easy to check emails and get dragged into a few more hours of work in the evening or weekends when working from home. She brings her laptop home and occasionally logs in but far fewer hours. At the office, there are far fewer distractions and interruptions. No dogs barking at the mailman or delivery person. No distractions from the kids especially over the summer when school is out. And no husband bugging her. At the office she has her office set up as a work environment so that she is more productive. The work office set up at home was fine but not built for that. The family has less stress as well. No trying to be quite while Mom is on a conference or Zoom call with the CFO or her staff. And then there is the social aspect to being back. The ability to see and talk to others in person instead of on a computer monitor. The ability to leave your desk and have lunch with others; while at home the majority of lunches were taken while sitting in front of the computer. The ability to walk over to someone to ask a question or get information instead of having to schedule a Zoom meeting. Obviously this not the case for everyone but she, and the rest of the family, is much more at ease with offices being open.

 

[Nubs70]

While it's true that productivity levels have increased since the pandemic, it's not accurate to attribute this solely to the lifting of COVID-related shutdowns. There are many potential factors that could be contributing to productivity levels, such as the adoption of new technologies or changes in work routines. In fact, research has shown that remote work can actually increase productivity for some (but not all!) workers, despite the challenges that come with it.

For example, a recent study by Harvard Business School found that a majority (but not all!) of workers were more productive and had a better work-life balance when working remotely. It's clear that the pandemic has brought about significant changes in the way we work, and it's important to consider all potential contributing factors when assessing productivity levels.

By taking a more nuanced approach to understanding productivity levels, we can better identify the challenges that workers and companies face and make informed decisions about the best ways to support long-term success. This means considering a range of potential factors, including new technologies, changes in consumer behavior, and shifting economic trends, rather than simply attributing causation based on temporal sequence (same fallacy).

Here's another monkey wrench that will break the brains of people who are used to old-school productivity concepts. Recent studies, such as the largest-ever study of a four-day workweek conducted in the United Kingdom, have shown that flexible work arrangements can have a positive impact on both workers and employers. This study found that 15% of employees who participated said they would not go back to working five days a week ("no amount of money", this cohort said!), and companies' revenue increased 35% on average when compared with a similar period from previous years. In addition to improved productivity and revenue, the study cited other benefits, such as increased gender equality, better sleep, and reduced stress for workers. These findings suggest that adopting more flexible work arrangements could be a positive step for both workers and businesses.

Being fair here, it's important to note that not all work arrangements will work for every industry or worker. But taking a nuanced approach to understanding the needs and preferences of workers and companies will be important in identifying the best solutions to support long-term success.

The conclusion of theHarvard study cited.was predictions on what types of employment were likely to WFH. Maybe you cited the wrong article.

As to WFH or short work.weeks causing record.revenue:

The world is in an inflationary cycle with prices increasing. Of course you will have record.revenue. 95% of my companies 2022 record revenue performance resulted from price increases.

Record revenue is due to inflation not WFH or hybrid work structures

 

[Lilofan]

Inside the Magic is reporting that Iger will discuss TWDC later this week including possible NBA Commissioner Adam Silver ( Iger's friend ) to be the next CEO to replace Iger. Iger is on a 2 year contract .

 

[Disstevefan1]

Inside the Magic is reporting that Iger will discuss TWDC later this week including possible NBA Commissioner Adam Silver ( Iger's friend ) to be the next CEO to replace Iger. Iger is on a 2 year contract .

I thought Iger was a big NBA fan and that is why he green lit the failed NBA experience.

I wonder now if he green lit the failed NBA experience because his friend is Adam Silver?

Now he may recommend his friend Adam Silver for CEO.

Worth a try, Iger can always "Chapek" Adam Silver after he is in the job its not working out.

 

[Lilofan]

I thought Iger was a big NBA fan and that is why he green lit the failed NBA experience.

I wonder now if he green lit the failed NBA experience because his friend is Adam Silver?

Now he may recommend his friend Adam Silver for CEO.

Worth a try, Iger can always "Chapek" Adam Silver after he is in the job.

At the grand opening of the NBA Experience at Disney Springs , now closed , Iger came to the event. Silver and Iger are buddies.

 

[Andrew25]

Adam Silver is really good at promoting innovation and has, so far, handled PR issues pretty well.

I think he's ideal for "returning the power back to creatives" and leaving Adam to managing the broader organization.

 

[bcoachable]

Inside the Magic is reporting that Iger will discuss TWDC later this week including possible NBA Commissioner Adam Silver ( Iger's friend ) to be the next CEO to replace Iger. Iger is on a 2 year contract .

I had heard this somewhere as well… seems to be a decent fit at first glance.